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ABSTRACT Extant literature on urban development is considerable in both developed and developing countries.
The theoretical and empirical nature of these studies are of different strands. However there is a consensus on the
influence of economic policies, principles and technology on urban development of cities in various regions of the
world. This paper is on the effects of the rave of the moment “globalisation” on cities in developing countries with
emphasis on Lagos, a prime city in West African sub-region. The paper highlights efforts towards economic
transformation in Nigeria prior to the emergence of globalisation and after its emergence. It noted that due to the
poor negotiative position of cities in developing countries caused by their weak productive position and export of
primary goods, low technology, poor financial strength, unstable economy, poor infrastructure facilities, insecurity
and instability in governance, cities in developing countries are not well positioned to obtain optional benefit of this
new world economic order. To reap these benefits, cities in developing countries will have to overcome these
obstacles.
This situation Aderemi (2003), noted places Africa only be achieved with government institutions
in a peripheral position in the world economy as sufficiently equipped to maintain the delicate
it has increasingly declining demand of her balance between supporting private and commu-
products in the world market. The option for nity efforts. Towards achieving these objectives
survival is to make her market open, its policies the Nigeria government established the Bureau
structured to accommodate market signals with of Public Enterprises (BPE) to facilitate the
limited negotiating strength to dictate market privatisation of many government agencies in
prices. For NEPAC to survive therefore Africa various sectors which include the oil sector,
will have to pool her resources together in order power, telecommunication, cement, hospitals,
to place herself in a better position of negotiation. hotels, steel, air lines amongst others. Apprecia-
This will entail a radical and combative approach ble progress have been made by the BPE,
to solving the economy dilemma of Africa. however efforts towards privatisation in Nigeria
The third global economic policy ravaging the has been confronted with many teething
world is the concept of privatisation, especially problems among which are underpricing,
of the State owned enterprises, services and unattractive incentives, instability in policies and
infrastructure. Generally it involve the selling or enforcement. Most of the implementation efforts
leasing on State assets to the private sector. Its have been unfriendly to the people.
merits include its ability to reduce financial
burdens on strained government budgets, GLOBALISATION AND DEVELOPING
capacity to improve efficiency of services and COUNTRIES
potential for attracting investment to capital
starved sectors. It has the capacity to offer the The issue of globalisation which seeks to
chance of improving both the livelihoods of integrate various parts of the world into a global
individuals and the services which they depends economy and global finance system has
on in their day to day lives. Presently in Nigeria increasingly been attracting considerable debate.
and in most developing countries the State have The forging of a global economy is an intoxicating
over-extended themselves, suffocating private and momentous process, one of the major
and community initiatives in the provision and structural features of the contemporary age
management of municipal services such as waste (Castells, 1992). The concept of globalisation
management, rail transit, parks, parking, water views the global economy as one, which works
supply, electricity, telephone, amongst others. as a unit on real time on a planetary scale. It is an
Privatisation might not be total withdrawal leav- economy concept where capital flows, labour and
ing everything to the private sector. Appropriate commodity markets, information, raw materials,
government intervention such as in policy management and organisation are internationali-
formation and monitoring are always in the hands zed and fully interdependent throughout the
of government. This demand highly skilled public planet. It corresponds to an attempt at contraction
administrators capable of performing such of space and time through the development of
complex technically difficult and politically sensi- new means of communication and information
tive tasks. These requirements are not presently technologies across the planet (Hammouda,
well developed in many developing countries 2000). Globalisation perceives the world as a trade
including Nigeria. This means that government unit without socio-political barriers and cons-
will have to prepare for this new role of transition traints. It is the process through which people,
from providers to enablers. Also government will goods and services, trades, ideas and information
not only make initial assessments on how flows across the borders of countries with ease
services should be supplied but also to administer (Asaju, 2002). This has been enhanced greatly
her role as supervisor once these establishments by technological breakthrough through the
are taken over by the private sector. The capacity development of the computer and telecommuni-
required should include ability to analyse and cation. Globalisation is characterised by liberaliza-
maintain market conditions, manage and enforce tion of the world economies and economic
contracts, regulation of monopolists, coordinate, activities that are free from institutional control
finance and support producers, enable community and which fosters and promotes free market
self provision and support consumers with infor- mechanism, private enterprise, open competition,
mation and alternatives (Batley, 1994). This can professionalism and excellence in corporate
202 LEKE ODUWAYE
governance. It seeks to promote specialisation result into paucity of inward foreign direct
and the principle of comparative advantage in investment and export of secondary and tertiary
the production of goods and services on a global products as the traditional strengths of these
scale. It is aimed at creating a new world economic regions are production and export of primary
order, efficiency, competitiveness, efficient alloca- products, while a high proportion of manufactur-
tion of resources and speedy growth of the world ed goods are imported. Therefore globalisation
economy. is likely to be of little advantage if any to develop-
Since economic factors are very strong among ing countries as most of them will turn into con-
factors influencing the growth of cities, there is suming nations.
no doubt that this new phenomena, like the At the global seen the influence of global
transportation and automobile revolution will economic direction have been documented in
have pronounced effects on how cities will Latin America and Asia (Rakodi, 1997) Caribbean
develop. This will vary among different world (Thrift, 1994). Their findings shows that
economic regions i.e. developing countries and significant regional and local differences exists.
the developed countries. First it can be speculated This reflect, the vulnerability of these regions to
that globalisation would generate greater disparity external policies and the level of their integration
and increase poverty in developing countries as into the changing international economic order.
these regions are not at equal levels and positions In the recently independent nations such as in
to compete with developed countries. Also it South Africa, strands of European colonial impact
could be an attempt to impose western standards, still exist and Zimbabwe is rigorously battling the
needs and values in developing countries as aftermath of colonial land tenure policy.
successfully done with SAP, all to the benefit of Unfortunately for developing countries
developed world through their multinational globalisation is gradually resulting into a new
corporations. This is in line with the view of Simon structure of global competition due to the
(1997) in his historical excursion of Africa appearance of “global” markets and “global”
economic path, Simon (1997) stated that over the production complexes (Thirft, 1994). This
past millennium, developing countries particularly scenario has been influence greatly by many
in Africa have been subjected to dramatic external factors among which are new innovations in
interventions and influences enmeshing them technology, such as micro-electronics, tele-
firmly within the emerging world system. He stated communication, material science all of which exert
further that with successive conquest, coloni- profound impact on refashioning world produc-
zations and associated cultural imperialisms of tion systems. There has been tremendous growth
Arab and European, Islam and Christianity and of transnational production and the increase
more recently the western imposed modernization openness and interdependence among national
and spread of capitalist ideology all have trans- economies. Also there has been a great lip in
formed and internationalized African culture in global financial market, with varsity improved
all areas of life include the use of land as land use global telecommunication and infrastructure. This
concepts and standards adopted by many African can easily be noticed in the investment of trans-
countries are reflections of their colonial masters national companies particularly in telecommuni-
home standards. cation and transportation in Nigeria especially in
Lagos. These changes have been manifesting at
EFFECTS OF GLOBALISATION ON both the national, the Lagos urban economy and
CITIES IN DEVELOPING COUNTRIES individual enterprises levels. At the national level
the impact has been on the intensification of
In most developing countries cities globalisa- international and local competition for markets
tion impact will vary greatly in extent and intensity and investments. It has also increase the rate of
over time, spatially, within and between cultures employment into these new sectors though at
and social class. Due to the weak financial base the detriment of the formal industrial sector which
and technology, developing countries will be at a is on the downward side. At the enterprises level,
disadvantage position in a world of globalised it has opened up the need for adoption of new
trading of industrial products. Though this may process technologies, flexible working system,
vary within and among regions in developing and organisation and shifting towards flexible
countries. In Africa and Lagos in particular it will rather than mass production system.
EFFECTS OF GLOBALIZATION ON CITIES IN DEVELOPING COUNTRIES 203
The concept of “space of flows” emerged from been stolled, with corresponding severe conse-
the process of globalisation (Castells, 1989). Also quences for urban economies and environment.
the emergency of “global or world cities” is fast In terms of industrial investments and land use,
growing roots. These cities are the loci for new Rakodi (1997) noted that large foreign enterprises
international division of labour in manufacturing, have continuously shunned Africa, thus turning
they are key hubs for the control and coordination Africa to be the only large and populous conti-
of global finance and producer services. Due to nent without a true newly industrializing country.
the strategic positions of these cities as the It is perhaps only the city of Johannesburg that
optimal beneficiaries of new, dynamic, high- is presently aiming at attaining “world city” status
income growth sectors of the economy “global in this decade (Rogerson, 1994). Towards this,
city status” is something to be coveted, defended the city has evolved strategies which include
and fought for (Dieleman and Hamnett, 1994). building up the financial and producer service
The effects of globalisation on the city land sector, attracting the offices of international
use is disturbing as it has both positive and organisations and developing a cultural strategy
negative effects. However, since it is a global trend to image the city better to foreign investors.
it is better for cities to be positioned as a player in The formal economic sector in many develop-
the phenomena. Despite the fact that Lagos ing countries is gradually on the decline due to
within the African and particularly West African the impediments to growth generated by globali-
sub-region context is a leading city it stands to sation. This is a prominent feature in Lagos as
benefit in the new competition process through the informal sector has invaded the city economic
efficiency and job creation. For many cities in fabric. In many countries in sub-Saharan Africa,
developing countries they will be left out of the regular urban wage employment opportunities
globalisation process as they are not in compara- constitute between 5-10 per cent (ILO, 1992).
tive positions when compared with the developed Recent studies shows a decline from this range
countries. This might be a clug in the process of with Central African Republic (33.6%) and Gambia
comparative development of the less developed (27%). Also the formal wage employment in the
regions. This new international division of labour public sector of these countries have been on
characterised by export-processing manufactur- the increase with massive retrenchments accom-
ing may bypass many cites in less developed panied by the declining absorptive capacity of
world to the extent that the economic structure of the formal private sector. Abiodun (1997) noted
such nations will include the gradual depletion that at least 70 per cent of the unemployed in
of industrial and production land uses. These Lagos are aged between 15-29, while in Kenya
nations will turn into merely consuming nations, according to House (1993), the mostly affected
thus creating dangerous socio-economic crisis age group for unemployment comprises those
in the immediate future. aged 20-29, who represent 65 per cent of all those
Also, these regions lack basic conducive reported as unemployed.
environment for globalisation to strive. Apart Table 1 shows the trend of public sector
from their spatial locations, their geographical retrenchment in selected African countries in the
significance is uncertain coupled with non- 1980s to 1990s. Generally the consequences of
existence of strong, and reliable state apparatus. stalled generated by globalisation on the formal
They also lack competitive technology and human economies of African cities have been
resource infrastructure. For Lagos, as in the case devastating.
of many cities in developing regions the pre- The socio-economic and spatial conse-
conditions for global competition are not in quences of retrenchment is increasingly growing
existence. Such condition include the capacity of the informal sector. This sector is characterised
to develop “niche product” which require flexi- by small-scale, mostly family-operated or indivi-
bility in the production process. This can only dual activities. This is a common phenomena in
be acquired through appropriate organisational cities of the developing countries. In Africa
framework and human resource. Rondinelli and Kasarda (1993), documented that
Due to instability, unreliable policy framework, this sector provide jobs for about 63 percent of
poor state of infrastructure and security in many total work force in urban Africa. ILO (1992)
developing countries, a situation of which Lagos estimates that in the 1990s about 93 per cent of
is not an exception globalisation processes have Africa urban labour force will be in the informal
204 LEKE ODUWAYE
Table 1: Public-Sector retrenchment in selected into the country to support the establishment of
African countries (1980s-1990s) these services have been majorly from foreign
Country Period Numbers % of investors as they possess the technology and
retrenched Total public high valued currency which can easily be
servants
converted into the local currency with good
Nigeria 1984-1988 156550 20
Kenya 1992-1997 149000 30
values. This has greatly revigorate the domestic
Zimbabwe 1990-1995 123000 25 economy of town and cities in Nigeria particularly
Ethiopia 1992-1995 80000 15 in Lagos.
Tanzania 1992-1995 80000 30 The city landscape has been significantly
Uganda 1991-1994 80000 26 transformed by the installation, erection and
Ghana 1987-1991 49873 15
Cameroon 1985-1992 47639 20 conversion of existing buildings to fit into the
Guinea 1986-1991 40000 20 new use of these global enterprises. This is more
Cote d’Ivoure 1986-1990 15000 15 pronounced in the telecommunication sectors
Togo 1983-1985 5000 10 where giant billboards are now corporate status
Gambia 1985-1986 na 17
symbols in the cityscape. This has generated
Source: ILO (1992) bandwagon effects into other sectors sense of
sector. Also this sector appear as survivalist and outdoor advertisement. This serves dual roles of
enterprises types. The survivalist are in form of income generation and improved cityscape.
people unable to secure regular wage employ- There has been improvement in the trans-
ment or access to economic sector of their choice. portation sector. This is presently more pro-
The enterprises group appears as small busi- nounced in the air transportation sector where
nesses employing between one to four paid the private sector consist of both local entre-
employees, they are predominantly in the trade preneur and foreign investors. This has improved
related activities. greatly the nature of air traveling in the country.
Despite the gloomy nature of the benefit A rapid transformation of the national
derivable from globalisation by cities in economy has been experienced. Unfortunately
developing countries it is important to note that this has been to the detriment of the industrial
these cities with Lagos as an example has sector as the economy is shifting towards the
benefited enormously from this process. Among services sector and importation of industrial
the notable gains of the city are: goods. Cultural transformation is also on the
· Emergency of new employment opportunities. increase as the opening-up of the economic
· Inflow of capital system allows exposure to cultures of other
· Improve telecommunications regions of the world particularly those of the home
· Improved city-scape origins of transitional enterprises of Europeans,
· Improved transport infrastructure Americans and Asian origins.
· Rapid changes in economic structure Tremendous financial gains have been
· Cultural integration experienced by all levels of government in Nigeria
· Generation of revenue to government generally especially in the areas of licencing,
· Improved local capacity. while state and local governments have also
Recently with the liberalization of many generated enormous revenues from the establish-
aspects of Nigeria economy such as in the mass ment of new enterprises brought into the
media (radio and television) in particular, the countries and various cities due to globali-sation
telecommunication sector particularly the trend.
telephone, inflow of computer networks such as The need to reap the benefit of these new
internet services etc.; all these have opened up service industries brought by globalisation has
new employment opportunities in Nigerian cities been a source of challenge to Nigerians, who at
in particular as most of these services have their various levels braced-up to improve their
operational bases in the cities where there is pool capacities to fit into the requirements of this
of consumers and skilled labour force. This is transformation.
very prominent in Lagos. These activities takes
place in space and specific locations, thus they RECOMMENDATIONS AND CONCLUSION
have contributed in opening up of hitherto
undeveloped areas in the city. Inflow of capital Unfortunately most developing countries of
EFFECTS OF GLOBALIZATION ON CITIES IN DEVELOPING COUNTRIES 205